NewBase 24-November -2022 Energy News issue - 1568 by Khaled Al Awadi_compressed (1).pdf

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NewBase Energy News 24 November 2022 No. 1568 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Qatar signs 27-year deal with China as LNG competition heats up
Reuters+ NewBase
QatarEnergy has signed a 27-year deal to supply China's Sinopec with liquefied natural gas (LNG),
the longest such LNG agreement so far as volatile markets drive buyers to seek long-term deals.
Following Russia's invasion of Ukraine in February, competition for LNG has become intense, with
Europe in particular needing vast amounts to help replace Russian pipeline gas that used to make
up almost 40% of the continent's imports.
"Today is an important milestone for the first sales and purchase agreement (SPA) for North Field
East project, it is 4 million tonnes for 27 years to Sinopec of China," QatarEnergy chief Saad al-
Kaabi told Reuters in Doha, shortly before the deal signing.
"It signifies long-term deals are here and important for both seller and buyer," he said. The North
Field is part of the world's biggest gas field that Qatar shares with Iran, which calls its share South
Pars.

QatarEnergy earlier this year signed five deals for North Field East (NFE), the first and larger of the
two-phase North Field expansion plan, which includes six LNG trains that will ramp up Qatar's
liquefaction capacity to 126 million tonnes per year by 2027 from 77 million.
It later signed contracts with three partners for North Field South (NFS), the second phase of the
expansion. Monday's deal, confirmed by Sinopec, is the first supply deal to be announced for NFE.
"We are very happy about this deal with Sinopec because we have had a long-term relationship in
the past and this takes our relationship to new heights as we have an SPA that will last into the
2050s," Kaabi said.
LONG-TERM SUPPLY
Kaabi said negotiations with other buyers in China and Europe that want to have security of supply
were ongoing.
Qatar is already the world's top LNG exporter and its North Field expansion project will boost that
position and help guarantee long-term supplies of gas to Europe as the continent seeks alternatives
to Russian flows.
"I think the recent volatility has driven buyers to understand the importance of having long-term
supply," Kaabi said. He added
negotiations for an equity stake in
the Gulf country's expansion
project were ongoing with several
entities.
The supply contract is a key
component for an integrated
partnership in the NFE, Sinopec
said in a statement, indicating it
could be involved in stake
negotiations.
QatarEnergy has maintained a
75% stake overall in the expansion
and could give up to a 5% stake
from its holding to some buyers,
Kaabi said. Sources told Reuters
in June that China's national oil
majors were in advanced talks with
Qatar to invest in NFE.

U.A.E Masdar enters Turkmenistan with 100MW solar plant
Arabian Business News + NewBase
Masdar, one of the world’s leading renewable energy companies, has signed a joint development
agreement (JDA) with Turkmenenergo State Power Corporation of the Ministry of Energy of
Turkmenistan (Turkmenenergo), to develop a 100 megawatt (MWac) solar photovoltaic (PV) plant,
which will be the company’s first
project in the Central asian
country.
The agreement builds on a MoU
signed between Masdar and the
Turkmenistan government in
October 2021 to explore the
development of and investment
in solar and wind power projects
in Turkmenistan on a public-
private partnership (PPP) basis.
The agreement was signed by
Masdar Chief Executive Officer
Mohammed Jameel Al Ramahi
and Deputy Chairman of the
Cabinet of Ministers of Turkmenistan HE Charymurat Purchekov at a ceremony held at the UAE-
Turkmenistan Business Forum in Abu Dhabi.
The JDA signing was witnessed by Serdar Berdymukhammedov, President of Turkmenistan, and
HE Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade.
Deputy Chairman of the Cabinet of Ministers of Turkmenistan Charymurat Purchekov said this
agreement will mark the beginning of a new stage in the development of the electric power industry
of Turkmenistan through the construction of solar and wind power plants, in which this company
has accumulated a large and rich experience.
"We thank Masdar for entering such an important agreement with us and look forward to long-term
cooperation,” he stated.
Masdar CEO Mohammed Jameel Al Ramahi said: "As a global leader in renewable energy with
many projects across Central Asia, Masdar has the right expertise and experience needed to
support Turkmenistan’s development of its renewable energy sector."
"We welcome the signing of the JDA and hope the 100 MWac project will be the first of many Masdar
projects in Turkmenistan," he noted.
Turkmenistan is looking to modernize its energy infrastructure and reduce its dependence on
hydrocarbons. While the nation has one of the largest gas reserves in the world, it also has multiple
natural advantages for developing renewable energy resources, with abundant annual sunlight
levels, and strong wind currents.-

Turkey: Trillion Energy gets flow test results for Akcakoca-3 well
Source: Trillon Energy
Trillion Energy International has announced flow test results for the Akcakoca-3 natural gas well at
the SASB gas field, offshore Turkey.
Three sands with a total of 34 metres of natural gas pay were identified for perforation in the
Akcakoca-3 well. Upon the first perforation of the upper 7 metre sand occurring, the well immediately
experienced a pressure buildup up to 7.0 MMcf/d (32/64” choke). Well head pressure measured
1,400 psi.
Based on initial gas flow and reservoir pressure data from perforation of the first sand, a decision
was made to commence producing this zone and perforate the remaining two sands (totaling 27
metres) at a future date, after production from the initial perforated interval starts to decline.
The final production flow rate will ultimately be established at the process facility.
Arthur Halleran, CEO of Trillion Energy stated:
'We are very pleased that our multi-well
drilling program is off to a very strong
start. We are 'Two for Two' so far with
both South Akcakoca-2 and Akcakoca-
3 wells now successfully producing
gas. Each well additionally has 10s of
metres of identified gas sands ready
for perforation and production in the
future to keep production levels up.
This is a desirable situation for the
Company to be in.'

EU Fights Back With Gas Cap
Bloomberg + NewBase
The EU is fighting back against Russian President Vladimir Putin's energy war with an emergency
brake on natural gas prices to prevent excessive spikes. As Moscow threatens to further
squeeze gas flows to Europe, the Commission yesterday proposed a cap level of 275 euros per
megawatt-hour, to be activated only after a series of conditions are met.
That’s well above current levels of about 120 euros, but below the highs the continent suffered in
the summer. Now the work shifts to national governments, who've been divided over how to tackle
the crisis and who'll have to sign off on the plan before it enters into force.
Oil Cap |
Group of Seven nations are aiming to announce the level at which they will set a price cap on
Russian crude oil today, we reported last week. Allies had earlier discussed setting the cap
somewhere between $40 and $60 per barrel, but sources said it could be above that.
Europe’s Economy Faces a Bleak 2023
Seven European countries are set to see an annual contraction in output next year, according to
new forecasts published by the OECD.
By far the worst performance projected is for Russia, which officials at the Paris-based organization
predict will see a 5.6% slump in gross domestic product after a 3.9% drop this year. In the euro
area, Germany -- the bloc’s biggest economy -- and Finland are seen shrinking the most, with 0.3%
declines.
Change in gross domestic product (YoY)
Source: Organization for Economic Cooperation and Development
Note: Forecasts for distinct economies, except Cyprus and Malta (euro-area average)

Nigeria: Deal signed for $5bln floating LNG Plant
Zawya + NewBase
Three international oil and gas firms have signed a memorandum of understanding (MoU) for the
construction of a $5 billion floating liquefied natural gas (LNG) facility in Nigeria, The Punch
newspaper said.
The facility is expected to process 176 million standard cubic feet of natural gas and condensate
per day.
Minister of State for Petroleum Resources, Chief Timipre Sylva, announced the signing of the front-
end engineering design contract by UTM Floating LNG Limited, JGC Corporation, Technip Energies
& Kellog Brown & Root Engineering Companies for the development of the first floating liquefied
natural gas facility in Nigeria.
African Export-Import Bank facilitated the signing of the MoU to raise funds required for the project,
the minister said, adding that the contract will lead to more deals in Nigeria’s gas sector.
According to Sylva, the Petroleum Industry Act 2021 has improved the sector’s reputation in Nigeria,
paving the way for new investments, jobs and economic diversification.
The number of offshore gas finds around the world is said to have surged in recent years, with LNG
and floating LNG becoming more critical in helping the world’s future energy needs.

Europe rushes to fill up on Russian diesel before ban begins
Reuters + NewBAse
European traders are rushing to fill tanks in the region with Russian diesel before an EU ban begins
in February, as alternative sources remain limited.
The European Union will ban Russian oil product imports, on which it relies heavily for its diesel, by
Feb. 5. That will follow a ban on Russian crude taking effect in December.
Russian diesel loadings destined for the Amsterdam-Rotterdam-Antwerp (ARA) storage region rose
to 215,000 bpd from Nov. 1 to Nov. 12, up by 126% from October, Pamela Munger, senior market
analyst at energy analytics firm Vortexa, said.
With few immediate cost-effective alternatives, diesel from Russia has made up 44% of Europe's
total imports of the road fuel so far in November, compared with 39% in October, Refinitiv data
shows.
Although Europe's reliance on the Russian fuel has fallen from more than 50% before Moscow's
February invasion of Ukraine, Russia is still the continent's largest diesel supplier.
ABB raises $209 million from placing shares in its e-vehicle charging business
"The EU will have to secure around 500-600 kb/d of diesel to replace the Russian volumes,
replacements will come from the US as well as east of Suez, primarily the Middle East and India,"
Eugene Lindell, refining and products market analyst at FGE, said.
The Russian gasoil heading into ARA tanks is likely to be used or sold quickly as a result of
backwardation in Ice gasoil futures , where the current value is higher than it will be in later months,
Lars van Wageningen, at Dutch consultancy Insights Global, said.

Part of the influx comes as ICE Futures Europe bans low-sulphur gasoil of Russian origin ahead of
EU sanctions.
From Nov. 30, traders must prove to ICE that no Russian product has entered any tanks in the wider
ARA region - including Flushing and Ghent - that will be used for January delivery through the ICE
futures contract.
Russian gasoil can still arrive in ARA storage tanks in December, but it must be moved to other
tanks from which no delivery can be made, according to ICE.
Some market players expect little impact from the ICE move given low storage levels in the ARA for
both Russian and non-Russian gasoil as well as declining delivered volumes.
"Volumes delivered upon expiry are actually pretty small ... it just adds an extra layer of logistical
challenge," Neil Crosby, senior analyst at oil analytics firm OilX, said.
In January 2022, 70,000 tonnes of gasoil were delivered through the Ice gasoil futures exchange's
website shows.

NewBase November 24 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil drops as Russian price cap proposal eases tight supply fears
Reuters + NewBase
Oil trickled down on Thursday, hovering around two-month lows, as the proposed price cap on
Russian oil from Group of Seven (G7) nations was considered higher than the current trading levels,
alleviating concerns over tight supply.
A greater-than-expected build in U.S. gasoline inventories and widening COVID controls in China
added to downward pressure.
Brent crude futures dipped 16 cents, or 0.16%, to $85.25 a barrel by 0600 GMT, while U.S. West
Texas Intermediate (WTI) crude futures fell by 12 cents, or 0.15%, to $77.82 a barrel.
Both benchmarks plunged more than 3% on Wednesday on news the planned price cap on Russian
oil could be above the current market level.
The G7 is looking at a cap on Russian seaborne oil at $65-$70 a barrel, according to a European
official, though European Union governments have not yet agreed on a price.
Oil price special
coverage
 G7 price cap on Russian oil could be above current trading level
 EIA gasoline stocks data shows higher-than-expected build
 U.S. may soon authorize Chevron to boost Venezuelan output

The range of $65-$70 would be higher than markets had expected, Commonwealth Bank
commodities analyst Vivek Dhar said in a report. It would reduce the risk of global supply being
disrupted, Dhar said.
"If the EU agree to an oil price cap of $65-$70/bbl this week, we see downside risks to our oil price
forecast of $95/bbl this quarter," Dhar said. Commonwealth Bank's forecast assumed EU sanctions
accompanied by a price cap on Russian oil would disrupt enough supply to offset ongoing global
growth concerns, he said.
Some Indian and Chinese refiners are paying prices below the proposed price cap level for Urals
crude, traders said. Urals is Russia's main export crude. EU governments will resume talks on the
price cap on Thursday or Friday, according to EU diplomats.
Oil prices also came under pressure after the Energy Information Administration (EIA) said on
Wednesday that U.S. gasoline and distillate inventories had both risen substantially last week. The
increase alleviated some concern about market tightness.
But crude inventories (USOILC=ECI) fell by 3.7 million barrels in the week to Nov. 18 to 431.7 million
barrels, compared with analysts' expectations in a Reuters poll for a 1.1 million-barrel drop.
"EU oil sanctions aside, so long as lockdowns continue to dot the landscape, the oil market's top-
side aspirations will be limited," said Stephen Innes, managing partner at SPI Asset Management,
in a note.
China on Wednesday reported the highest number of daily COVID-19 cases since the start of the
pandemic began nearly three years ago. Local authorities tightened controls to stamp out the
outbreaks, adding to investor worries about the economy and fuel demand.
Meanwhile, Chevron Corp could soon win U.S. approval to expand operations in Venezuela and
resume trading its oil once the Venezuelan government and its opposition resume political talks,
four people familiar with the matter said on Wednesday.
Both Venezuelan parties and U.S. officials are pushing to hold talks in Mexico City this weekend,
the people said. They would be the first such talks since October 2021 and could pave the way for
easing U.S. oil sanctions on the nation, a member of the Organization of the Petroleum Exporting
Countries (OPEC).

U.S. gasoline prices now are mostly unchanged from last year
U.S. Energy Information Administration, Gasoline and Diesel Fuel Update, and the U.S. Bureau of Labor Statistics
Consumers paid, on average, $3.65 per gallon (gal) at the pump for U.S. regular gasoline on
November 21, the Monday before Thanksgiving. This year's Monday-before-Thanksgiving price is
7.5%, or $0.25/gal, higher than last year, which is the same as the overall consumer goods price
increase of 7.7%, based on the Consumer Price Index (CPI).
U.S. retail gasoline prices typically follow a seasonal trend: prices increase in the summer, when
people are driving more, and then decline in the winter. After reaching more than $5.00/gal this
summer, prices declined into the autumn as a result of seasonal price trends as well as declines in
both crude oil prices and crack spreads (the difference between spot petroleum product prices and
crude oil prices).
This Thanksgiving, the American Automotive Association (AAA), forecasts that 54.6 million people
will travel 50 miles or more over for the Thanksgiving holiday, a 1.5% increase from 2021.U.S.
gasoline prices vary regionally, reflecting local supply and demand conditions, fuel specifications
required by state laws, and
taxes.
Regional gasoline prices are
usually the highest on the
West Coast because of the
region’s limited connections
with other major refining
centers, tight supply and
demand conditions, and fuel
specifications that make

gasoline more costly to manufacture. On November 21, West Coast prices averaged $4.78/gal, a
$0.59/gal (14%) increase compared with last year's Monday-before price.
The Rocky Mountain region faces many similar logistical constraints as the West Coast, although
overall supply and demand in the region are both lower. On November 21, Rocky Mountain retail
gasoline prices averaged $3.64/gal, a $0.11/gal (3%) increase compared with last year.
Unplanned refinery outages in the Midwest (including an extended outage at the BP-Cenovus
refinery in Toledo, Ohio, following an explosion and fire) have contributed to comparatively higher
retail gasoline prices in the region recently. On November 21, retail prices in the Midwest averaged
$3.52/gal, a $0.32/gal (10%) increase compared with last year.
The average retail price on the East Coast, which typically tracks close to the U.S. average, fell to
as low as $0.45/gal below the U.S. average in early October. On November 21, the price increased
to $3.54/gal, a $0.19/gal (6%) increase compared to last year.
The Gulf Coast region, home to more than half of the nation’s refining capacity, typically has the
lowest retail gasoline prices. On November 21, the Gulf Coast average retail gasoline price was
$3.02/gal, a $0.01/gal (0%) decrease from last year.

NewBase Specual Coverage
The Energy world –November -23 -2022
CLEAN ENERGY
NOVEMBER 23, 2022
Natural gas imports from Canada continue providing winter
reliability to U.S. markets
U.S. EIA, Natural Gas Imports and Exports/Pipelines
Despite the downward trend in natural gas imports from Canada, trade between the United States
and Canada remains important in balancing U.S. natural gas markets and helps ensure reliable
supply to parts of the United States.
Because of ample capacity on pipelines and in storage facilities in Canada, suppliers can rapidly
increase flows, which helps to stabilize the U.S. market during periods of supply and demand
imbalance, such as during cold winter months.
In 2005, 17% of total U.S. supply of dry natural gas was imported from Canada. Since then,
Canada’s share of imported dry natural gas supply to the United States has declined because U.S.
domestic natural gas production has grown.
As of the end of August, gross imports of dry natural gas from Canada accounted for, on average,
8% of U.S. supply, and U.S. natural gas production averaged 92%, or 97.0 billion cubic feet per day
(Bcf/d), according to our Natural Gas Monthly.

During the same time period, U.S. pipeline exports of natural gas to Canada have increased. In
2000, U.S. exports averaged 2% of all pipeline natural gas trade with Canada. In 2005, that share
increased to 9%. Through August of this year, it averaged 24%.
Natural gas imports from Canada to the western United States have provided a steady source of
supply and have been increasing. So far this year, they have increased 4.1% compared with the
same period in 2021.
The border-crossing points at Sumas, Washington, and Eastport, Idaho, principally supply
metropolitan areas in the Pacific Northwest and California, where several factors have
challenged supply and demand balances this year:
 More demand for electric power to run air-conditioning due to sustained high temperatures
and an extreme heat wave this summer
 Less hydroelectric power generation due to drought
 Reduced natural gas inflows from the Permian Basin due to pipeline constraints
Natural gas pipeline capacity has expanded throughout the eastern United States, and the region
is typically a net exporter of natural gas to Canada for much of the year.
Imports from Canada, however, help support annual seasonal fluctuations in consumption,
particularly during the winter peak in the United States, when cold temperatures drive demand for

heating. Since 2012, imports into the eastern United States have generally peaked in January or
February at approximately 2 Bcf/d and then again in July or August at approximately 1 Bcf/d, when
high temperatures drive demand for air-conditioning.
During the shoulder seasons (spring and fall), net flows of natural gas reverse, flowing into Canada
to build inventories.
During Winter Storm Uri in February 2021, U.S. natural gas production had record declines, and
imports from Canada increased to 9.5 Bcf/d to meet U.S. demand, the highest monthly average
since February 2011.
In our August 2021 Short-Term Energy Outlook (STEO), we forecast that U.S. natural gas exports
will exceed natural gas imports by an average of 11.0 billion cubic feet per day (Bcf/d) in 2021, or
almost 50% more than the 2020 average of 7.5 Bcf/d.

Increases in liquefied natural gas (LNG) exports and in pipeline exports to Mexico are driving this
growth in U.S. natural gas exports. For the first time since U.S. LNG exports from the Lower 48
states began in 2016, annual LNG exports are expected to outpace pipeline exports—by an
estimated 0.6 Bcf/d—this year.
We forecast total U.S. natural gas exports to continue to grow throughout 2021 and 2022, exceeding
the record of 14.4 Bcf/d set in 2020. We expect U.S. exports of natural gas by pipeline and as LNG
combined to average 18.3 Bcf/d in 2021 and 19.3 Bcf/d in 2022. LNG exports exceeded pipeline
exports for the first time on a monthly basis in November 2020, and we expect them to average 9.5
Bcf/d and exceed natural gas imports by pipeline (8.9 Bcf/d) in 2021.
In 2020, natural gas exports accounted for 23% of total U.S. energy exports in energy equivalent
terms. U.S. LNG exports in particular have grown as the United States has added LNG export
capacity and expanded its LNG export destinations.
We expect U.S. imports of natural gas by pipeline and as LNG, combined, to increase by 6%
compared with 2020, averaging 7.4 Bcf/d in 2021, before declining to 6.9 Bcf/d in 2022. Almost all
U.S. natural gas imports enter the United States from Canada into midwestern and western demand
markets.
U.S. pipeline imports previously had been declining annually since 2008. However, we expect
pipeline imports of natural gas to increase in 2021 because of relatively flat U.S. dry natural gas
production and slightly higher U.S. natural gas consumption.
Natural gas exports by pipeline—almost all of which are sent to Mexico—began exceeding gross
pipeline imports on an annual basis in 2019. In 2020, U.S. pipeline exports exceeded imports by
1.1 Bcf/d, and we expect this difference to increase to 1.7 Bcf/d in 2021 and 2.5 Bcf/d 2022.

NewBase Energy News 23 November 2022 - Issue No. 1568 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the GCC
area via many leading Energy Services companies. Khaled is the Founder of the
NewBase Energy news articles issues, Khaled is an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East, Africa
and Asia. Khaled has successfully accomplished a wide range of projects in the areas
of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor
stations. Executed projects in the designing & constructing of gas pipelines, gas
metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted
& finalized many contracts/agreements in products sale, transportation, operation & maintenance
agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing
for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in
numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is
the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400
popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy,
waste management, plant Automation IA and environmental sustainability in different parts of the world.
Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

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